Ukrainian President Viktor Yushchenko said on Saturday that Ukraine wants to develop and deepen economic relations with Russia. "We have traditional relations of friendship with Russia where Ukraine used to sell 38% of its produce and is now selling just 18%. We want to develop our interests in this market. But what we need is a different policy and other mechanisms. That is why we talk about the CIS and those Common Economic Space initiatives, which are vitally important for us," Yushchenko, who is currently visiting Georgia, told a briefing in the mountain resort town of Borzhomi, Itar-Tass reported. "I spoke against the Common Economic Space when I was in parliament because parliament was little informed about the goals, values and ideas of this space. Today, when we pursue a dialogue, we say that Ukraine has three goals in the Common Economic Space: the creation of a free trade zone; the system of harmonized customs relations in order to ease the movement of goods, services and workforce," Yushchenko went on to say.

He noted that Ukraine and Russia should establish a system of single tariffs if they want to open mutual markets. "Services and goods should move in one regime," Yushchenko added.

This is interesting, because Yushchenko told the CES to take a hike but he failed to join the WTO when he said he would, the EU doesn't want him in right now and his socialized economy is running at 4-5% GDP vs last year's 12.7% while the revalued Griva lost most people 3% of their savings. Unemployment is up and exports vs imports have collapsed in standing so the country is now running a deficit. So now he's back tracking on the CES. Interesting.

Yushchenko is in a screwed up position, having failed to join the WTO or the EU, having pissed off the Russians, having collapsed growth from 12.7% to 4% and inflation of 15% (highest in Europe), having imports outstrip exports for the first time (thus running a deficit), having skyrocketing energy costs (no more special relationship with Russia, now he gets to pay world prices) and having destroyed several markets by price fixing (another socialist economic jewel). Deny all you want, but the first 8 months of the Yushenko-Tymoshenko Road Show has been a singular disaster for Ukraine, so much so that even Union was criticizing him.

12
posted on 08/16/2005 2:46:51 PM PDT
by jb6
(The Atheist/Pagan mind, a quandary wrapped in egoism and served with a side order of self importance)

WTO is coming. it's not a permanent failure. By the way, were those your buddies that were blocking the WTO motion in the Rada? EU is long term, 10-15 years. Why would you even mention it half a year after Yu. came to power?

>>>having pissed off the Russians

So what. Who are Russians.

>>>having collapsed growth from 12.7% to 4%

Can you read Ukrainian? (Of course you can't, I forgot you're Russian) From the article below: in 2005, current government expects GDP growth to be 8.2% It also mentions the predictions for the 2005 year of the previous administration- 6.5% ->even those guys were expecting a slow down. http://www.pravda.com.ua/news/2005/8/4/24411.htm

>> having imports outstrip exports for the first time(thus >>running a deficit),

>> having skyrocketing energy costs (no more special >>relationship with Russia, now he gets to pay world prices)

That "special" relationship meant additional political favors. When Ukraine buys it's gas/oil from somebody else it would only normalize relations, none of that "older brother" BS. To cover the increased expenses, Ukraine will raise the transit rates it charges on Russian oil.

Inflation and market regulation attempts are the only valid points on the list. There are difficulties, but Rome wasn't build in one day. Pointless trivia: guess who has a higher political rating, your Yanukovych or my Yuschenko.

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